Quick overview

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Nestlé SA is attempting to stabilize the world’s largest food company by relying on the executive who oversees its coffee empire, following the dismissal of its second CEO in less than a year. Nestlé’s stock dropped 4 percent before some reversal

The Swiss company’s chief executive officer, Philipp Navratil, will take over after Laurent Freixe left on Monday for failing to disclose an affair with a direct subordinate, and Mark Schneider left last year due to poor performance. According to an individual familiar with the situation who wished to remain anonymous to discuss private matters, the female employee is no longer employed by Nestlé.

Investors are now focusing on Navratil, a 49-year-old business veteran with over 20 years of experience who could theoretically lead the KitKat chocolate bar manufacturer for ten or more years. He began working for Nestlé in 2001 and has mostly worked in Central America, including Mexico, specializing in the coffee industry.

Later, he oversaw the Nescafé brand and the license deal with Starbucks Corp. while leading the group’s global coffee division. which experts believe to be among Nestlé’s most promising ventures. In July 2024, he was appointed CEO of Nespresso, a manufacturer of coffee makers and single-use capsules.

Navratil’s appointment and Nestlé’s chairman change next year represent the real generational step that should probably have happened 12 months earlier.

Nevertheless, there are doubts about the Swiss and Austrian national ability to revive a business whose stock has fallen more than 40% since its peak in early 2022. It had been Freixe’s responsibility to undo the slide, which Schneider had started.